3 Reasons to Buy Term Life Insurance ASAP

Don't wait to get covered.

Term life insurance pays out a death benefit when the policyholder passes away. It is one of the most important types of insurance a person can purchase because it ensures the people depending on them don't suffer serious financial consequences in the event of an untimely death.

While life insurance may seem like a purchase that can be put off for people who are still young and healthy -- especially if they don't have a lot of dependents yet -- the reality is that buying coverage ASAP is a good idea for most consumers. Here are three reasons why.

1. Term life insurance protects loved ones

Most people have loved ones who depend on them, at least at some point over the course of their lives. This could be anyone from a spouse who relies on a husband or wife's income to help cover the mortgage, aging parents who rely on a child for care, children who need a parent's financial support, or business partners.

If a consumer has anyone depending on their income or on the services that they provide, term life insurance will provide essential protection for these loved ones. No one wants their spouse to have to leave the family home after a death because the mortgage is unaffordable, or their children to end up without the necessities.

Term life insurance with an appropriate death benefit ensures this won't happen.

2. Term life insurance provides peace of mind

Not having a financial plan to provide for loved ones after you've passed can be stressful. Those who depend on someone else's income may also worry about making financial commitments that they couldn't follow through with on their own.

The purchase of term life insurance can provide peace of mind for the policyholder as well as for those who are dependent on him or her for their financial support. A policyholder also won't have to worry about whether they will develop a medical issue that makes getting future coverage more difficult when they need it.

3. Buying coverage ASAP makes it possible to get covered before something happens that prevents it

Finally, waiting to buy life insurance creates a risk that no comprehensive coverage will be available at all for an affordable price.

See, insurers evaluate the risk of someone passing away during a coverage term in order to determine whether to approve a policy application and what premiums to charge for coverage. If a life insurance applicant has developed certain serious conditions, the risk of death during the coverage term may be so great the insurer won't provide coverage at all or will do so only for an exorbitant premium that is out of most people's budgets.

The longer a person delays their purchase of term life insurance, the greater the chances of this type of serious condition developing, so the more likely it is that it will become too late to get covered. However, there are always guaranteed issue or no-medical-exam policies available. These provide protection to people regardless of their medical status. These policies may have low coverage limits and lengthy waiting periods before paying out the full death benefit, so they won't provide the same level of protection.

Rather than waiting to get covered until it becomes more expensive or impossible -- and being forced to worry about the financial future of loved ones during that time -- it's best for most people to get term life insurance ASAP so they will have the necessary protections in place.